Piramal now said to have invested in Shriram Group's real estate business

Shriram Properties is reportedly in talks with the Piramal Enterprises, ICIC Pru, Ask Property and others to raise around Rs 300 crore to support its Rs 700-crore investment plan to acquire land parcels

Chennai: After it invested in Shriram Group’s financial services business, the Piramal group put in Rs 75 crore in Shriram Summit, a residential project coming at electronics city in Bengaluru, sources said.

Shriram Properties is reportedly in talks with the Piramal Enterprises, ICIC Pru, Ask Property and others to raise around Rs 300 crore to support its Rs 700-crore investment plan to acquire land parcels.

Shriram Properties’ managing director M Murali refused to comment. A Piramal Enterprises spokesperson said, “We do not comment on market speculation.” According to sources, Piramal has also shown interest in three other projects of Shriram Properties.

Last year, Piramal picked stake in Shriram group and in Shriram Capital. Starting May 2013, it invested Rs 4,556 crore. Ajay Piramal was also named as chairman of Shriram Capital.

While declining to confirm the names (which are in talks with Shriram Properties), Murali said: “Many investors have been showing interest in investing in the company,” adding the company would look at raising around Rs 300 crore in the current financial year to support its plan to acquire lands worth Rs 500-700 crore.

The company is looking at acquiring 200-250 acres across Chennai, Bengalaru, Hyderabad and Kolkata.

Besides investing in land bank, Shriram Properties is also planning to invest around Rs 1,000 crore to develop 3.5 million sq ft of residential space and 370,000 sq ft of commercial space in 2015-16.

This investment will be funded through debt and internal accruals, said Murali, adding that all the projects will be developed by the company on its own and a major chunk of it would be for the mid-market segment, which is priced at Rs 40-70 lakh.

In 2014-15, the company developed 2.15 million sq ft of residential space and 300,000 sq ft of commercial space.

The real estate firm is planning to develop projects across Bengalaru, Coimbatore, Chennai, Vishakapatnam and Kolkata. “We are also foraying into Hyderabad market this year with the launch of a residential project,” said Murali.

On the company's long-pending initial public offering plan, Murali said: “This year, we may not; we will think about it in the next financial year.”